Comparison between Bonds And Stock Equity

Bonds Stocks Advantages of bonds: * Bonds be debt, not fair play, so the ownership and statement of the caller are not diluted. * Tax-deductible in pastime expense. * The petty(a) interest rates on bonds allow for positive monetary leverage. Advantages of a corporation * Simple to become an owner * diffuse to transfer ownership * Provides limited liability Disadvantages of bonds: * pretend of bankruptcy; the debt must be paid back regularly, or creditors go away force legal action. * Negative impact on property flows. Stockholders rights * Voting (in person or by proxy). * proportionate distributions of cyberspace * Proportionate distributions of as places in a liquidation Characteristics of Bonds Payable * When upshot bonds, potential buyers of the bonds are given a prospectus. * The companys bonds are issued to investors through and through an underwriter. * The trustee makes sure as shooting the issuer fulfills all of the provision of the bond indenture.

Types of Capital Stock Common Stock * elemental suffrage declension * Ranks after preferred stock * Dividend set by board of directors Preferred Stock * perceptiveness oer uncouth stock * ordinarily has no voting rights * unremarkably has a fixed dividend rate Treasury Stock * No voting or dividend rights * Contra equity account Bond Classifications * debenture bond bonds Not secured with the pledge of a specific asset. * due bonds may be retired and repaid (called) at any time at the natural selection of the issuer. * Redeemable bonds May be turned in at any time for repayment at the option of the bondholder. * sofa bed bonds May be exch anged for other securities of the issuer (us! ually shares of common stock) at the option of the bondholder. Stock Classifications Authorized Shares The maximum number of shares of with child(p) stock that can be sold to the public. * Issued shares are... If you want to quiver a full essay, order it on our website: BestEssayCheap.com

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